April 20, 2024
Silicone Gel Market

The Global Silicone Gel Market is Trending by Demand in Electrical & Electronics Applications

The global silicone gel market is witnessing growing demand as silicone gel finds wide application in electrical & electronics industry due to its beneficial properties such as thermal conductivity, resilience, and water resistance. Silicone gel acts as an excellent insulator and protects delicate electronic components from excessive heat, moisture, dust and other environmental factors. It provides stress relief and prevents cracking in devices. The market is primarily driven by increasing consumption of silicone gel in diverse applications including thermal management solutions, potting & encapsulation, conformal coatings etc.

The Global Silicone Gel Market is estimated to be valued at US$ 18.88 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the global Silicone Gel Market Growth are DOW Corning Corporation, Shin-Etsu Chemical Co., Ltd., Wacker Chemie AG, Momentive Performance Materials Inc., Bluestar Silicones, ACC Silicones Ltd., Gelest Inc., KCC Corporation, Nusil Technology LLC., Henkel AG & Co, Ashirwad Chemicals, Akshar international, Royal Packaging industries, Swambe Chemicals, Otto Chemie Pvt Ltd, Sorbead India, Aquablue mfg, Elkkem. Key players are focusing on expansion of production facilities and new product development activities to cater to the growing demand from various end-use industries.

The global silicone gel market is witnessing significant growth owing to rising demand from electronics & electrical industry. Growing consumption of electronic devices and increasing need for high performance heat transfer materials is propelling the demand of silicone gel. Properties of silicone gel such as resistance to moisture, chemicals and temperature fluctuations makes it an ideal solution for thermal management in various electronic components.

Asia Pacific dominates the global silicone gel market and the trend is expected to continue over the forecast period. Countries like China, Japan, South Korea and India are major consumers of silicone gel attributed to large electronics manufacturing base. Furthermore, expansion of production facilities by key players in the region is anticipated to augment the silicone gel market growth in Asia Pacific during the forecast period.

Market Key Trends

Miniaturization of electronic devices is one of the key trends driving the demand for silicone gel in the market. Manufacturers are focusing on development of compact and portable devices which require effective thermal management systems. Silicone gel plays a vital role in such applications owing to its excellent thermal conductivity properties. It helps dissipate heat efficiently from densely packed circuit boards and tiny semiconductor chips. Driven by the trend of miniaturization, consumption of silicone gel is expected to grow significantly over the coming years.

Porter’s Analysis

Threat of new entrants: The global silicone gel market requires huge R&D investments and compliance with strict regulations which pose entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, silicone gel offers unique properties that give it an advantage.
Bargaining power of suppliers: A few major players dominate the supply market, giving them significant power over buyers. However, buyers can leverage alternative raw material sources to negotiate.
Threat of new substitutes: Other specialty polymers and oils provide substitutes but silicone gel offers unmatchable insulating and waterproofing properties difficult to replicate.
Competitive rivalry: Being a specialized market, competition is intense among the top brands to introduce new product varieties and gain market share.

Geographical regions with major market share:

Asia Pacific currently holds the major share of the global silicone gel market due to high demand from the electronics and medical industries in countries like China, Japan, South Korea and India.

Fastest growing region:

North America is expected to witness the fastest growth during the forecast period. This can be attributed to increasing healthcare and industrial spending, stringent regulatory policies regarding product compliance and growing awareness about silicone gel benefits in therapeutics and electronics.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.